Question
V Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear
V Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original Budget | Actual Costs | |
---|---|---|
Variable overhead costs: | ||
Supplies | $ 6,800 | $ 6,990 |
Indirect labor | 10,620 | 9,970 |
Fixed overhead costs: | ||
Supervision | 14,610 | 14,390 |
Utilities | 13,900 | 13,950 |
Factory depreciation | 58,430 | 58,600 |
Total overhead cost | $ 104,360 | $ 103,900 |
The company based its original budget on 6,900 machine-hours. The company actually worked 6,860 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,790 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
-
$1,386 Favorable
-
$1,386 Unfavorable
-
$1,290 Favorable
-
$1,290 Unfavorable
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